GBP/USD Price Analysis: Grinds higher past 1.3400 but bulls remain unconvinced
- GBP/USD struggle to keep the upside break of the key Fibonacci retracement level.
- Bearish MACD signals join sustained trading below previously important support to keep sellers hopeful.
- February’s double tops appear a tough nut to crack for buyers.
GBP/USD seesaws around 1.3415-20 during the initial Asian session on Tuesday, after a brief decline below crucial support the previous day.
In addition to the cable pair’s latest struggle in keeping the rebound, bearish MACD signals, clear break of the previously important support lines and moving averages also favor sellers.
However, a daily closing below the 61.8% Fibonacci retracement (Fibo.) of December-January upside, around 1.3385, becomes necessary to aim for February’s low near 1.3275, with the 1.3300 likely acting as a buffer.
In a case where GBP/USD remains soft below 1.3275, the late 2021 trough near 1.3160 will be in focus.
On the contrary, buyers may take interest should the latest recovery moves cross the 50% Fibo. level surrounding 1.3455.
Even so, the 100-DMA and the support-turned-resistance line from December, respectively around 1.3500 and 1.3510, will challenge the GBP/USD bulls.
It should be noted that the double tops marked in February, near 1.3640-45, become crucial resistance.
GBP/USD: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
